Britain is withholding all financial aid payments to Mozambique following Maputo's admission of as much as $1.35 billion of previously undisclosed borrowing, much of it for maritime security.

"This appears to be a serious breach of trust, so we are working closely with other international partners to establish the truth and coordinate an appropriate response," Britain's Department for International Development said in a statement.

The International Monetary Fund said on Saturday that Mozambique had admitted to having over one billion dollars of undisclosed debt.